15% CAPEX reduction through rigor supplier rationalization for a leading telecom operator.
Client Challenge
Our client, a leading telecommunications company, faced significant challenges in managing their field services operations. They needed to streamline their supplier base from over 15 suppliers to just 4, with the aim of reducing CAPEX costs by a minimum of 15%. The client required a comprehensive business case and scenario assessment to ensure the selected suppliers could meet their operational and financial goals.
Response
We approached this challenge by conducting a thorough scenario assessment and business case analysis. Our team evaluated the current supplier landscape, identifying key performance metrics and cost drivers. We developed a detailed value case that highlighted potential savings and operational efficiencies. Through a rigorous selection process, we assessed each supplier’s capabilities, financial stability, and alignment with the client’s strategic objectives.
Outcomes
Our efforts resulted in the successful downselection from ~15 suppliers to 4 highly qualified suppliers. This strategic move not only met but exceeded the client’s goal, achieving a CAPEX cost reduction of over 15%. The streamlined supplier base improved operational efficiency, reduced complexity, and enhanced service delivery. The client now benefits from a more agile and cost-effective field services operation, positioning them for future growth and success.
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